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Article
Publication date: 4 April 2016

Morteza Shokri-Ghasabeh and Nicholas Chileshe

The purpose of this study is to investigate and rank the critical factors influencing the bid/no bid criteria and their importance in the Australian construction industry.

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Abstract

Purpose

The purpose of this study is to investigate and rank the critical factors influencing the bid/no bid criteria and their importance in the Australian construction industry.

Design/methodology/approach

The research study has been undertaken by conducting an extensive literature review on bid/no bid decision-making criteria. As a result, the researchers identified 26 most common bid/no bid decision-making criteria that are accordingly grouped into five distinct categories, namely, “project”, “market”,“contractor”, “client” and “contract”. The literature review was followed by a national survey that was designed and utilised by the researchers to collect data for this purpose. The survey was sent to potential 450 Australian construction companies in various locations and responses were received from 81 Australian construction companies. Response data were subjected to descriptive and inferential statistics. Kruskal Wallis one-way analysis of variance (ANOVA) was applied to detect significant differences between the mean score grouped according to the organisation size (contract value).

Findings

The descriptive and empirical analysis demonstrated a disparity of ranking of the 26 bid/no bid criteria factors among the groups; however no statistically significant differences among the 26 bid/no criteria factors despite the absolute differences in the rankings and mean scores in the following four factors: (1) “bidding condition”, (2) “strength/weaknesses”, (3) “contract payment terms” and (4) “number of competitors/bidders”. Based on the overall sample, the highly ranked four factors were “client financial capability”, “project risk”, “project future benefits and profitability” and “number of competitors/bidders”. The following were the least ranked: “contractors’ financial situation”, “project duration” and “contractors’ material availability”. “Client financial capability”and “project risk” were jointly ranked as the most important by large, whereas “client financial capability” was also rated highly for smaller Australian construction contractors (ACCs). The medium ACCs had “project risk”as highly ranked.

Research limitations

The majority of the participants were small construction contractors in Australia. The reason is that the researchers were not aware of the contractors’ size prior to inviting them for participation in the research study. Second, the findings may not generalise to other industries or to organisations operating in other countries.

Practical implications

The identified “bid/no bid criteria” increase the awareness of existing decision-making practices and play a critical role in the future decisions of the construction companies, where decision makers need to evaluate the next opportunities encountered. Furthermore, knowledge and possession of these identified “bid/no bid” criteria would enable contractors to select a project with a higher probability of success in the future, which will accordingly result in long-term financial benefits and higher performance. Finally, the awareness of these factors could contribute to changing the contractor’s behaviours when bidding in a competitive environment or market conditions.

Originality/value

The study contributes to the body of knowledge on tendering and bidding practices among contractors in Australia, an area previously under explored. Second, this study provides some insights on the factors influencing the bid/no bid decisions among the ACCs.

Details

Construction Innovation, vol. 16 no. 2
Type: Research Article
ISSN: 1471-4175

Keywords

Article
Publication date: 11 August 2021

Brenton Lawson, Larissa Statsenko and Morteza Shokri-Ghasabeh

Adopting a qualitative research design and following a single case study research methodology 21 semi-structured interviews with asset integrity project managers (PM), project…

Abstract

Purpose

Adopting a qualitative research design and following a single case study research methodology 21 semi-structured interviews with asset integrity project managers (PM), project sponsors (PS) and members of the project management office (PMO) were conducted. These were complemented with company’s project management framework documents and tools and direct observation by the researcher’s observation.

Design/methodology/approach

The data on the value creation in the mining asset integrity and improvement project portfolio was collected through 21 interviews with PM, PS and members of the PMO and complemented by observational data and the analysis of the Australian mining company process documentation.

Findings

The study finds that establishing a culture of delivering value supported by functional governance is critical for effective value creation practice in asset integrity and improvement project portfolios. In addition, early engagement of the key stakeholders with clearly defined roles and utilisation of project value management artifacts, enables effective value delivery throughout the project lifecycle.

Originality/value

The research offers an empirically grounded framework to facilitate value creation throughout the project lifecycle in asset integrity and improvement project portfolios drawing on a benchmarking case of an Australian mining company.

Details

Journal of Engineering, Design and Technology , vol. 20 no. 2
Type: Research Article
ISSN: 1726-0531

Keywords

Article
Publication date: 6 January 2014

Morteza Shokri-Ghasabeh and Nicholas Chileshe

A research study has been undertaken at the University of South Australia to introduce application of lessons learned process in construction contractors ' bidding process…

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Abstract

Purpose

A research study has been undertaken at the University of South Australia to introduce application of lessons learned process in construction contractors ' bidding process in the context of knowledge management. The study aims to identify barriers to effectively capture lessons learned in Australian construction industry and how knowledge management can benefit from lessons learned application.

Design/methodology/approach

The research study has been undertaken through conducting a “methodological triangulation” and “interdisciplinary triangulation”. This involved an extensive literature review of knowledge management, organisation learning, lessons learned and associated processes and administration of a questionnaire to a sample of construction contractors operating in Australia to elicit opinions on the main barriers to capturing lessons learned, practices such as existence and retention of documentation procedures. A total of 81 useable responses were received from 450 organisations. Response data were subjected to descriptive and inferential statistics with correlation analysis to examine the strength of relationship among the barriers.

Findings

The top-3 barriers to the effective capturing of lessons learned were “lack of employee time”, “lack of resources” and “lack of clear guidelines”, whereas, “lack of management support” was the least ranked barrier. The study established that despite the majority of the ACCs having formal procedures for recording the tenders submitted and their outcomes, only a minority actually retained the lessons learned documentation for each project. The larger contractors were found to be more aware of the importance of lessons learned documentation. A comparative analysis with previous studies also found a disparity in the ranking of the barriers.

Research limitations/implications

The majority of the participants were small construction contractors in Australia. The reason is that the researchers were not aware of the contractors ' size prior to inviting them for participation in the research study. Second the findings may not generalize to other industries or to organisations operating in other countries.

Originality/value

The findings of this survey help ACCs to understand the importance of lessons learned documentation as part of lessons learned implementation and identify the barriers to effectively document their lessons learned. The study provides insights on the barriers and proposes advocated solutions in form of drivers and enablers (critical success factors) of organisational learning capturing among the Australian construction contractors. By reviewing the current literature, “post-project reviews” and “lessons learned” as important elements of organisation learning knowledge transfer, are addressed. Finally, contribution of this study to knowledge and practice has been discussed in this paper.

Details

Construction Innovation, vol. 14 no. 1
Type: Research Article
ISSN: 1471-4175

Keywords

Article
Publication date: 19 November 2019

Guanghua Li, Chuan Chen, Guomin Zhang and Igor Martek

Factors affecting bid/no-bid decisions of international projects are more complex than those of domestic projects. The purpose of this paper is to identify and rank decision…

Abstract

Purpose

Factors affecting bid/no-bid decisions of international projects are more complex than those of domestic projects. The purpose of this paper is to identify and rank decision factors considered by variously sized Chinese international contractors (CICs) and categorize those groups of factors important to experienced practitioners.

Design/methodology/approach

The analysis of factors identified by a literature review is conducted based on data derived from questionnaire results received from 119 CIC project and bidding managers. The relative importance of factors is measured by mean value and standard deviation. The discrepancy in rank and importance value perceived by variously sized CICs are explored by ranking disparity analysis, non-parametric test and Spearman’s rank correlation coefficient test. Finally, factor analysis is used to categorize the underlying groups of factors considered by CICs.

Findings

In sum, 41 factors are identified through the literature review as having an impact on the bid decision. Significant disparities in ranking and importance are found in several factors, which partially affect the consistency of the ranking of factors perceived between large and small-medium CICs. Ultimately, nine major factors are identified as impacting the bidding decision, with “contractor’s capability” and “country risk of the host country,” being the most important.

Research limitations/implications

The weight of a factor considered in a decision varies across contractors as a function of contractor size. Whether using models or subjective judgment in making decisions, it is beneficial to fully understand the main groups of factors influencing the decision. Vulnerability to country risk emerges as the first criterion accessed in the bid decision.

Originality/value

A comprehensive set of factors is established for CICs, including both general factors common to domestic projects, and international factors unique to international projects. All factors are grouped by inferential analysis from the perspective of contractors, which reveals the underlying mechanism of the bid decision-making process. While the data were collected from CICs, the methodology in exploring factors, along with implications, is determined to be applicable internationally.

Details

Engineering, Construction and Architectural Management, vol. 27 no. 7
Type: Research Article
ISSN: 0969-9988

Keywords

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